Business & Money | Monday 25 March, 2019 3:27 pm |

Eshraq Investments PJSC (“Eshraq” or “Company”), the Abu Dhabi based investment company listed on Abu Dhabi Securities Exchange (“ADX”), has reportedan11%year-on-yearincreaseinoperationalrevenue,toAED26.0mnfromAED23.4mn in 2017. In addition, Eshraq saw an increase of 20% year-on-year in its financial investment returns, primarily due to deployment of capital in equity and fixed income investments. The Company has achieved its second year of profits under the new management, although net profit of AED 3.0 million for 2018 reflects the impact of a number of one-off, non-cash asset impairments.

 

The Company’s audited results were approved at a board meeting held on Sunday, March 24. At the meeting, the board of directors approved plans to cross list some of the Company’s shares on the Saudi Stock Exchange (Tadawul), announcing the appointment of Banque Saudi Fransi and Baker McKenzie as advisors on the deal.

 

In2018,Eshraqsoughttodiversifyitsrevenuesourcestooffsettheimpactofdeclineinrealestate earnings.Eshraq’shospitalityandleasingbusinessmaintaineditsmarketleadingrentalyield,with occupancy rates of more than 91% in Q4 2018, outperforming its peers. Eshraq’s investment portfolio also generated strong income from investments anddeposits.

 

On the development front, Eshraq’s Marina Rise project construction is now over 20% complete and is targeted to be ready by Q2 2020. Once completed, Marina Rise will be Eshraq’s first development project to contribute to its bottom line from next year.

 

 

Eshraq’s Chairman Mr. Jassim Alseddiqi commented on the results: “In the last few years, our focus has been to resolve all legacy issues and to return Eshraq to sustainable profits, ensuring efficient utilisation of the excess cash balances. In addition, we have been seeking ways to transform the Company’s business model to build its resilience amid the slowdown in real estate

 

activity. Today, we have successfully transitioned the Company’s focus from real estate development to investing across different businesses. We are paving the way for further growth and diversification by tapping into strategic investment opportunities outside real estate and into various sectors where we see huge potential. Our goal is to identify and invest in lucrative opportunities to maximize shareholders’ value, while taking Eshraq from strength to strength.”